Slide 1: Full Year FFO Up 3.9% to 25.24c Per Security
ASX Announcement 20 February 2019 For personal use only FULL YEAR FUNDS FROM OPERATIONS UP 3.9% TO 25.24c PER SECURITY: EXTRAORDINARY LIVING CENTRE PLATFORM CONTINUES TO GROW Scentre Group (ASX: SCG) today released its results for the 12 months to 31 December 2018, with Funds From Operations (“FFO”)
Slide 2: Outlook and Company Information
Carousel in Perth, Westfield Tea Tree Plaza in Adelaide, Westfield Kotara in Newcastle and Westfield Coomera on Queensland’s Gold Coast - Scentre Group’s first greenfield living centre. These developments elevated the customer experience, differentiated our product and service offering and enhanced
Slide 3: 2018 Full Year Results
2018 FULL YEAR RESULTS For personal use only Westfield Coomera, QLD
Slide 4: Scentre Group Overview
SCENTRE GROUP OVERVIEW For personal use only Extraordinary platform with 41 Living Centres valued at over $54 billion 1 – Generating $24 billion of annual retail in-store sales across Australia and New Zealand – More than 7% of all retail sales in Australia occur in a Westfield Living Centre – Over
Slide 5: Full Year Results December 2018
FULL YEAR RESULTS 31 December 2018 For personal use only Funds From Operations per security 25.24 cents + 3.9% “We are pleased to Distribution per security 22.16 cents + 2.0% deliver these strong SCG share of AUM $39.1 billion + 8.0% results in line with our forecast, demonstrating Assets Under Mana
Slide 6: Operating Performance
OPERATING PERFORMANCE 31 December 2018 For personal use only Comparable Net Operating Income (NOI) + 2.5% “We are seeing more Portfolio Leased 99.3% customers coming to Total Lettable Area > 3.8 million sqm, increase of 193,400 sqm1 our living centres, coming more often as Customer Visits Per Annum
Slide 7: Highlights
HIGHLIGHTS Enhanced Customer Experience For personal use only Active curation of retail, services and experiences to meet customer expectations – Introduced 437 new brands to the portfolio, and 317 existing brands grew their store network – More than 35% of the stores across our portfolio are experi
Slide 8: Retailer In-Store Sales
RETAILER IN-STORE SALES Comparable in-store sales growth psm 1 For personal use only – Total specialty in-store sales were up 1.5% for the year 3 months to 31 Dec 2018 12 months to 31 Dec 2018 – > 400 sqm in-store sales were up 2.1% for the year Retail Services 1.0% 2.3% Leisure 0.4% 1.1% – < 400 sq
Slide 9: Retailer In-Store Sales by Region
RETAILER IN-STORE SALES Comparable specialty in-store sales growth psm by region 1 For personal use only 7 1. Total stable portfolio SCENTRE GROUP FULL YEAR RESULTS 2018 7
Slide 10: Development Activity
DEVELOPMENT ACTIVITY For personal use only Total Project SCGShare GLA Added Completion Cost $m $m sqm 2018 Completed Projects – Commenced the NZ$790 million Plenty Valley 80 40 10,300 Q1 2018 (SCG share: NZ$400 million) redevelopment of Carousel 350 350 27,500 Q3 2018 Westfield Newmarket in 2018, op
Slide 11: Future Developments
FUTURE DEVELOPMENTS For personal use only 1 Albany (NZ) 2 Barangaroo (NSW) 3 Booragoon (WA)1 7 4 Eastgardens (NSW) 5 Knox (VIC) 6 Marion (SA) 7 Stirling (Innaloo) (WA) 8 Sydney (NSW) Westfield Stirling, WA 3 11 8 9 St Lukes (NZ) 7 12 6 2 4 1 8 10 9 10 Tea Tree Plaza (SA) 5 11 Warringah Mall – stage
Slide 12: Scentre Group Portfolio
SCENTRE GROUP PORTFOLIO For personal use only As at 31 Dec 2018 Total Centres 41 Gross Lettable Area (sqm) 3.8m SCG share of AUM $39.1bn 6 centres JV Partner share of AUM Assets Under Management (AUM) $15.1bn $54.2bn Brisbane $6.3bn 2 WHOLLY OWNED 4 JOINT VENTURES Cap Rates Range Average 3 Perth Ade
Slide 13: Financial Performance
FINANCIAL PERFORMANCE Funds From Operations For personal use only 3.9% $m 12 months to 12 months to Growth % 31 Dec 2018 31 Dec 2017 Net Operating Income 1,900.8 1,848.6 Management Income 46.1 45.4 FFO growth per security Project Income 85.3 80.1 Delivering 25.24 cents per security Income 2,032.2 1,
Slide 14: Financial Position
FINANCIAL POSITION Balance Sheet For personal use only $39.1bn $m 31 Dec 2018 31 Dec 2017 Total Property Investments 39,101.1 36,228.8 Total Assets 40,982.3 37,536.0 Property Investments up 8.0% Total Liabilities 16,419.6 14,081.0 Net Assets before Minority Interest 24,562.7 23,455.0 $23.6bn Minorit
Slide 15: Debt Management
DEBT MANAGEMENT 31 December 2018 For personal use only Debt metrics Net Debt $13.5bn Gearing (look through basis) Weighted average interest rate 33.9% 4.4% $2.1bn 33.9 % Weighted average debt maturity 4.4 years Liquidity Gearing Liquidity $2.1bn Interest rate exposure hedged percentage 69% Investmen
Slide 16: Debt Management: Maturity Profile and Liquidity
DEBT MANAGEMENT For personal use only Maturity Profile 1,2 Facilities & liquidity 1,2 3.0 % $bn 2.5 Bonds 2.0 USD 22% 3.5 EUR 26% 4.0 1.5 GBP 10% 1.5 AUD 4% 0.6 1.0 Total 62% 9.6 0.5 Bank Facilities Drawn 26% 4.1 - Undrawn 12% 1.9 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total 38% 6.0 Bonds
Slide 17: Outlook 2019 Forecast
OUTLOOK 2019 FORECAST For personal use only Funds From Operations Growth approx. 3% “We are excited about Distribution per security 22.60 cents, +2.0% the prospects for our business and ability Comparable NOI Growth approx. 2.5% to continue to create long-term value for our securityholders.” PETER A
Slide 18: Appendix
APPENDIX For personal use only 16 Westfield Carousel, WA SCENTRE GROUP FULL YEAR RESULTS 2018 16
Slide 19: Developments: Westfield Carousel, WA
DEVELOPMENTS Completed project For personal use only WESTFIELD CAROUSEL, WA Overview Project Cost $350m (SCG share: $350m) Commencement Q1 2017 Completion Q3 2018 Highlights Incremental Project GLA 27,500sqm Westfield Carousel, WA Completed Centre GLA 110,000sqm New Anchors David Jones, H&M, new ent
Slide 20: Developments: Westfield Coomera, QLD
DEVELOPMENTS Completed project For personal use only WESTFIELD COOMERA, QLD Overview Project Cost $470m (SCG share: $235m) Commencement Q2 2017 Completion Q4 2018 Highlights Completed Centre GLA 59,000sqm Westfield Coomera, QLD New Anchors Event Cinemas, Kmart, Target, Coles, Woolworths, new dining
Slide 21: Developments: Westfield Kotara, NSW
DEVELOPMENTS Completed project For personal use only WESTFIELD KOTARA, NSW Overview Project Cost $160m (SCG share: $160m) Commencement Q3 2017 Completion Q4 2018 Highlights Incremental Project GLA 6,250sqm Westfield Kotara, NSW Completed Centre GLA 82,000sqm New Anchors H&M, Zara, new Kmart, JB Hi F
Slide 22: Developments: Westfield Tea Tree Plaza, SA
DEVELOPMENTS Completed project For personal use only WESTFIELD TEA TREE PLAZA, SA Overview Project Cost $50m (SCG share: $25m) Commencement Q3 2017 Completion Q4 2018 Highlights Incremental Project GLA 3,500sqm Westfield Tea Tree Plaza, SA Completed Centre GLA 99,000sqm Dining & Leisure Expanded HOY
Slide 23: Developments: Westfield Newmarket, NZ
DEVELOPMENTS Active project For personal use only WESTFIELD NEWMARKET, NZ Overview Project Cost NZ$790m (SCG share: NZ$400m) Commencement Q1 2018 Completion Q4 2019 Highlights Incremental Project GLA 52,000sqm Westfield Newmarket, NZ Completed Centre GLA 88,150sqm New Anchors David Jones, Farmers, C
Slide 24: Leasing & Retail Solutions
LEASING & RETAIL SOLUTIONS For personal use only 31 Dec 2018 Comparable Net Operating Income grew by 2.5% in 2018. Portfolio Leased 99.3% This was primarily driven by contracted annual rent Average Specialty Store Rent (psm) $1,654 escalations of approx. CPI+2% Specialty Occupancy Cost 18.0% Lease D
Slide 25: Profit & FFO
PROFIT & FFO Reconciliation from Profit to FFO For personal use only Profit FFO FFO Financial 12 monthsto 12 monthsto Statement $m 31 Dec2018 Adjustments 1 31 Dec2018 Notes A B C = A +B Net operating income 1,833.0 67.8 1,900.8 Note 2(iii) Management income 2 46.1 — 46.1 Project income 3 85.3 — 85.3
Slide 26: Balance Sheet
BALANCE SHEET Balance Sheet – Proportionate 1 For personal use only $m Consolidated EquityAccounted 31 Dec2018 A B C = A +B Cash 206.1 7.8 213.9 Property Investments – Shopping centres 35,522.6 2,828.4 38,351.0 – Development projects and construction in progress 522.2 227.9 750.1 Total property inve
Slide 27: Cash Flow
CASH FLOW Cash flows from operating activities – look through basis For personal use only $m 31 Dec 2018 Receipts in the course of operations (including GST) 2,940.8 Payments in the course of operations (including GST) (930.9) Net operating cash flows from equity accounted entities 125.7 Income and
Slide 28: Interest Rate Hedging Profile
INTEREST RATE HEDGING PROFILE For personal use only $ Fixed rate debt Derivatives $ debt payable $ swap payable NZ$ swap payable NZ$ collar payable 31 December 1 $m Fixed rate $m Fixed rate NZ$m Fixed rate NZ$m Strike rate 2018 (580.0) 3.25% (8,147.3) 2.86% (510.0) 3.08% (70.0) 3.39%/5.25% 2019 (430
Slide 29: Important Notice
IMPORTANT NOTICE For personal use only All amounts in Australian dollars unless otherwise specified. The financial information included in this document is based on the Scentre Group’s IFRS financial statements. Non IFRS financial information included in this document has not been audited or reviewe